This Tata Group Stock Gained 56% In 1 Year, Buy It For A Target Price Of Rs 516

Leading brokerage firm Edelweiss Research has recommended investors to buy the Tata Group Stock, Tata Motors Ltd for a revised target price of Rs 514 apiece.

Price target of Rs 514

According to the brokerage, "We believe, JLR Q1 performance is a classic case of a perfect storm. More importantly, a large part of the loss can be recouped with ramp up in production. Hence, we lower our FY23E EBIDTA by a mere 5% and Retain Buy rating with a revised target of Rs 514 per share."

Meanwhile, Tata Motors' Q1FY23 results lagged expectations, largely due to poor performance of JLR business, marred by unfavourable volume mix. Performance of CV and PV businesses was broadly in-line with expectations. "We maintain Buy with an unchanged price target of Rs. 516, driven by expected recovery in volumes and operational improvement across its business verticals and geographies," Sharekhan said

Tata Motors' Q1 Results

Earlier last month in July, 2022 Tata Motors Ltd declared a bigger first-quarter loss on Wednesday. The Jaguar Land Rover parent announced a consolidated net loss of Rs 5,007 crore for the quarter ended June 30, as compared with a loss of Rs 4,451 crore reported a year ago. The company's consolidated revenue from operations surged 8% to Rs 71,935 crore as against Rs 66,406 crore in Q1FY22, according to a PTI report.

"We expect demand to remain strong despite worries on inflation and geo-political risks while the supply situation is expected to improve further. Cooling commodity prices are expected to aid improvement in underlying margins. We aim to deliver strong improvements in EBIT and free cash flows from Q2 onwards to get to near net auto debt free by FY24," said Tata Motors in its regulatory filing.

Stock outlook

The current market price of the stock is Rs 477 apiece on BSE with a 52-week high of Rs 536 apiece and 52-week low of Rs 268 apiece, respectively. The company has a market capitalization of Rs 1,58,586.12 crore. It has a negative ROE of 1.26. the stock has gained 56% in last 1 year, 291% in last 3 years, and 27% in last 5 years.

About Tata Motors:

Tata Motors Limited, a USD 37 billion organisation, is a leading global automobile manufacturer with a portfolio that covers a wide range of cars, SUVs, buses, trucks, pickups and defence vehicles, according to its official website.

Disclaimer

The stock has been picked from the brokerage reports Sharekhan and Edelweiss Research. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.